Alloy Steel Inc. (fka AYSI)

[Swick984]

I've been buying more shares here below $1. I think this is all due to tax loss selling. A year ago we were sitting at $1.50 per share. Since then, they've reported $0.13 in EPS for the first nine months. The company will report Q4 results in mid-December and I expect another $0.04 - $0.05 EPS quarter. Cash should rebound nicely here as there is a significant amount tied up in inventory and A/R, which should come down to more normal levels. I'm expecting them to finish the year over $13 million in cash, or $0.75+ per share. Assuming they can sell their Indonesia land at just $2.5 million, you're basically getting the operations which generate $0.15 - $0.20 per share in earnings and cash flow a year for free at these prices.

Of course, the key here is that the company needs to actually provide the shareholders some of that value, whether it be through a sale or through a dividend.

They are not holding pat though, they have been actively looking to monetize their equipment for Arcoplate production in different ways, including setting up a separate business that focuses on cutting metal using their specialized equipment:

http://www.sprintcutting.com.au/

They set up the business name back in 2017 and look to be up and running. Doing a google map search of their headquarters show both the Sprint Cutting logo and Arcoplate logo on their building.

http://www.abr.business.gov.au/ABN/View/98094428887

Looking at this site, it appears as though they've set up another business, ARCOWELD. We'll see what this business will do, but I expect it will be similar to Sprint Cutting in which they use their equipment for other uses.

I checked their website today and I haven't had any issues with malware, etc.

Within the industry, expansions continue, with Vale looking at increasing production from their largest mine in Brazil. Iron ore prices remain strong, so I'd expect AYSI's results to continue to be solid.